Govt Allocates 97% of Earmarked Funds to Boost Chip Manufacturing

• Government has committed almost full ₹65,000 crore semiconductor fund ₹62,900 crore allocated chiefly already.
• Only a few small semiconductor projects can be funded under currently limited remaining budget.
• The Semicon India 2025 event will showcase industry momentum, hosted by Prime Minister Modi.

The Indian government has already committed nearly ₹62,900 crore, about 97 percent of the ₹65,000 crore earmarked for semiconductor manufacturing incentives leaving limited scope for new projects under the scheme.

Explaining about the upcoming Semicon India 2025 event, Electronics and IT Secretary S. Krishnan stated that the allocation is part of the 76,000 crore India Semiconductor Mission. Out of this, 65,000 crore was set aside for manufacturing incentives, 10,000 crore to modernise the Semiconductor Laboratory in Mohali and 1,000 crore under the design-linked incentive scheme.

“Out of this Rs 65,000 crore, I think we have committed close to Rs 62,900 crore or so already. We have limited funding, which we have available; we might be able to just accommodate two or three small projects," Krishnan said.

The announcement comes ahead of Semicon India 2025, a three-day global semiconductor event scheduled to be held from September 2-4 at Yashobhoomi, New Delhi. The summit is expected to bring together delegates from 33 countries along with more than 50 top executives from global semiconductor leaders.

Also Read: AI, Predictive Analytics & Digital Twins Powering FPSO Lifecycle Management

Prominent industry players including Applied Materials, ASML, IBM, Infineon, KLA, Lam Research, Merck, Micron, PSMC, Rapidus, Sandisk, Siemens, SK Hynix, Tata Electronics, and Tokyo Electron are set to participate.

So far, the government has approved 10 projects of strategic importance, spanning areas such as high-volume fabrication units (fabs), 3D heterogeneous packaging, Compound Semiconductors such as silicon carbide (SiC), and Outsourced Semiconductor Assembly and Testing (OSAT).

The government’s strong commitment reflects India’s determination to build a resilient semiconductor ecosystem. However, with the bulk of funds already allocated, only a handful of smaller ventures may find space under the current incentive framework.